A lively residential property market, underpinned by growing mine activity, offers investors a golden opportunity in the North-West town of Brits.

"Between five and 10 new vertical shafts are planned at the local chromium and platinum mines," says Lawrence Jordaan of the Chas Everitt International franchise in Brits. "And each shaft employs between 4000 and 5000 people, which represents the total number of residential homes in Brits currently.

"Growth in prices already reflects the rocketing demand for housing in the town, with the entry level now at around R500 000 for a three-bedroom family home that needs renovation. Generally, prices range between R600 000 and just more than R1-million, with exclusive homes now costing well over R2-million."

Jordaan notes that new development, which had been put on ice because of a lag in infrastructure supply, has resumed, but that there is still pressure on the town's sewerage system and water supply.

"Consequently, most new developments, mostly undertaken by local developers who have land available, now make use of the so-called Lily system, where sewerage water is recycled on site for irrigation use in gardens.

Supply not meeting demand
"But new homes — mostly townhouses — are still not being supplied fast enough or in sufficient number to meet demand. The mines are increasingly having to house employees in park-home villages near the mines at Mooinooi. Many mine employees also have to commute daily from as far afield as Rustenburg because local housing simply is not available."

There is also lively demand for smallholdings of between 1,2ha and 8ha surrounding the town, while small irrigation farms are very popular because of the rich turf soils and stable irrigation quotas, Jordaan says. "In the Brits climate, many irrigation farmers are able to make three plantings of cash crops per season, as opposed to the single crop in many other parts of the country."

Large arable farms in the area are also still selling well. An established 400ha farm with irrigation infrastructure and quotas from the Hartbeespoort Dam irrigation scheme, for instance, will sell at around R11-million. Prices for game farms, meanwhile, vary between R3000 and R13 000/ha. Several hunting farms are on offer while some farms offer game viewing of the Big Five.